When it comes to government contracting, two things can make or break your success: following labor laws and staying ahead of risks. These aren’t just boxes to check—they’re ways to protect your team, keep your projects on track, and maintain a reputation for doing things the right way.
In this article, I’ll walk you through the basics of labor laws, how to manage risks effectively, and share some real-world examples from my own experience.
Labor Laws: The Rules of the Game
Labor laws are there to protect workers and promote fairness, but for government contractors, they’re extra important. Breaking the rules can mean fines, losing contracts, or damaging your reputation.
Here are some key labor laws you need to know:
- Davis-Bacon Act: You’ve got to pay workers the “prevailing wage” on federally funded projects.
- Fair Labor Standards Act (FLSA): Covers minimum wage, overtime pay, and more.
- Family and Medical Leave Act (FMLA): Gives eligible employees time off for family or medical needs.
- Occupational Safety and Health Act (OSHA): Keeps workplaces safe and healthy.
- Equal Employment Opportunity (EEO): Ensures hiring and promotions are fair and free of discrimination.
Risk Management: Plan for the Unexpected
Risk management is all about staying ahead of problems before they turn into disasters. In government contracting, risks can pop up from safety issues, regulatory compliance, or even supply chain hiccups.
Here’s how to manage risk like a pro:
- Spot the Risks: Identify things that could go wrong, like worker injuries or material delays.
- Assess the Risks: Figure out how likely each issue is and how much it could impact your project.
- Make a Plan: Have backup solutions ready, so you’re not scrambling if something goes wrong.
- Keep an Eye Out: Monitor risks throughout the project and adjust your plans as needed.
A Real-World Example
One of our projects involved building ADA-compliant ramps for public buildings. It wasn’t just about pouring concrete; there were lots of labor and risk challenges to tackle:
- Labor Compliance: We made sure everyone was paid fairly under the Davis-Bacon Act and followed EEO guidelines to build a diverse team.
- Safety First: OSHA-compliant safety measures, like PPE and training sessions, were non-negotiable.
- Planning Ahead: To avoid delays, we lined up multiple suppliers and kept a buffer of materials on hand.
In the end, we finished on time, stayed within budget, and had zero safety incidents. That’s what happens when you plan smart and take care of your team.
Tips for Contractors
Want to stay ahead of the game? Here are some tips that have worked for us:
- Stay Updated: Labor laws and safety rules change, so make it a habit to stay in the loop.
- Train Your Team: Give your employees the tools they need to understand safety and compliance.
- Document Everything: Keep records of wages, safety checks, and any incidents—it’ll save you headaches later.
- Get Expert Advice: When in doubt, talk to a labor law specialist.
- Prioritize Safety: Make sure your team knows safety is everyone’s responsibility.
Why It Matters
Following labor laws and managing risks isn’t just about avoiding fines or penalties. It’s about creating a workplace that’s fair, safe, and respectful. When your employees trust you, and your clients see your integrity, it sets you up for long-term success.
What’s Next?
Next up, we’ll talk about finding and hiring top-notch tradesmen and professionals. Building a strong team is one of the most important parts of government contracting, and I’ll share some strategies to make it easier.
Stay tuned as we keep breaking down the challenges of government contracting into actionable, real-world advice.